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India Inc bets on mid-level talent

India Inc bets on mid-level talent

News Arena India 2 days ago

Amid rising concerns over employee attrition, India Inc is expected to adopt a cautious hiring approach in 2026-27, with a stronger focus on mid-level roles and moderate salary increments ranging between 5-10 per cent, according to a report released on Tuesday.

The study by Genius HRTech highlights that hiring demand will largely be concentrated in the mid-level segment, with nearly 49 per cent of surveyed organisations identifying it as their primary focus area. This reflects a strategic shift towards strengthening experienced talent pools while maintaining cost efficiency.

In terms of overall workforce expansion, the report indicates a mixed outlook. Around 28 per cent of organisations are planning significant hiring growth exceeding 10-15 per cent, whereas 43 per cent expect only marginal expansion in the range of 0-5 per cent, pointing to a measured and selective hiring environment.

On the compensation front, companies are preparing for a competitive yet controlled salary landscape. While 34 per cent of respondents anticipate offering increments above 10 per cent, a larger share-46 per cent-expects salary hikes to remain moderate, within the 5-10 per cent range.

Regulatory and labour reforms are also expected to play a key role in shaping compensation strategies. About 57 per cent of organisations indicated that they are restructuring their pay frameworks to align with upcoming changes under the Labour Codes, signalling a broader shift towards compliance-driven workforce policies.

The distribution of increments is likely to favour mid-senior level employees, with 48 per cent of organisations prioritising this group. Junior-level employees are expected to receive 26 per cent of increments, while senior-level professionals account for 22 per cent.

Attrition, however, continues to be a major concern. The report reveals that 55 per cent of organisations expect attrition rates to fall between 10-20 per cent, while 15 per cent foresee levels exceeding 20 per cent. Mid-senior level employees are seen as the most vulnerable group, with 67 per cent of respondents identifying them as most prone to leaving.

Regionally, the South zone is expected to witness the highest attrition, with 55 per cent of respondents highlighting it as the most affected region. Changing workforce expectations are emerging as a key driver behind attrition trends. Around 50 per cent of organisations attribute employee turnover to growing demands for flexibility, meaningful work, and faster career progression-particularly among younger employees influenced by Gen Z and the emerging Gen Alpha workforce.

Additionally, 38 per cent of organisations reported an increased need for continuous engagement, regular feedback, and learning opportunities as critical factors in retaining talent.

Interestingly, job security concerns appear to have a relatively limited impact. About 43 per cent of organisations view them as either moderate or minor contributors to attrition, especially when compared to compensation and career growth factors.

Commenting on the findings, Chairman and Managing Director R P Yadav said hiring strategies for 2026-27 reflect a shift towards cautious, data-driven decision-making. He emphasised that the focus will remain on mid-level talent, digital skills and evolving business requirements, while rising attrition underscores the need for stronger workforce planning and retention strategies.

Yadav also noted a growing trend towards agile, demand-based hiring models that balance permanent roles with project-based engagements. This approach, he said, will be driven by the need for speed, skill alignment, technological adaptability, and scalability to support sustainable growth.

The report is based on a survey of 2,359 CXO-level executives and senior professionals across industries in India. It also highlights gradual progress in diversity hiring, with 27 per cent of organisations aiming for a balanced 50:50 male-to-female ratio, while 31 per cent project a 60:40 split. However, a significant proportion still reported a skew toward male hiring.

Regionally, hiring activity is expected to be strongest in the North and West zones, each accounting for 32 per cent of responses, followed by the East and South, the report added.

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Disclaimer: This content has not been generated, created or edited by Dailyhunt. Publisher: News Arena India